Can Monetary Policy Mitigate The Effects of Oil Shocks? A Follow|Up

Can Monetary Policy Mitigate The Effects of Oil Shocks? A Follow-Up

An old paper by Bernanke, Gertler, and Watson (BGW) that attributed much of the impact of past oil price shocks to the response of monetary policy.

Rising Oil Prices, Loose Monetary Policy, and US Inflation | NBER

A shock to oil prices that increases the real price of oil by 6 percent reduces GDP by 20 to 30 basis points and increases the price level by 20 ...

Monetary Policy Responses to Oil Price Fluctuations

4.2 The Effects of a Foreign Oil Intensity Shock. Figure 1 illustrates the effects of a one-standard deviation shock that pushes up foreign ...

Oil Shocks, Monetary Policy, and Economic Activity

previous values of each series, this would indicate that monetary policy does have real effects. (The opposite is true for the unemployment rate, since.

Monetary policy and the effect of the oil prices pass-through to inflation

In turn, monetary policy may cushion the consequences of this shock or, conversely, make them more painful. For example, Bernanke et al. (1997) ...

Inflation, oil price volatility and monetary policy - ScienceDirect.com

(2000), the larger response of monetary policy to higher expected inflation reduces the impact of oil price shocks on average inflation. An implication of our ...

Managing an Energy Shock: Fiscal and Monetary Policy

... monetary policy stance can meaningfully bring down inflation or mitigate the recession. ... Monetary Policy and the Effects of Oil. Price Shocks,” Brookings ...

Systematic Monetary Policy and the Effects of Oil Price Shocks

However, he does not explicitly attempt to decompose the effect of oil price shocks on the economy into a part due to the change in oil prices and a part due to ...

The impact of monetary policy shocks on commodity prices

In particular, we investigate whether the positive impact on oil prices of a monetary policy loosening can be ascribed to incentives to stock accumulation, ...

Second-Round Effects of Oil Price Shocks

To take a classic example of oil price shocks pushing up inflation, a country's monetary policy cannot alter global oil prices but can influence the extent to ...

Rising Oil Prices and Economic Turmoil | St. Louis Fed

The oil price shock, as economists have coined it, occurred as monetary policy-makers acted to keep the economy from overheating.

Oil Prices, Monetary Policy and Inflation Surges

Indeed, over this period, monetary policy shocks more than offset the contractionary effect of oil shocks: from mid 2020 onward, oil shocks contribute a ...

Oil Price Shocks, Systematic Monetary Policy and the 'Great ...

of monetary policy in mitigating the effect of an oil price shock is considerably smaller. Only, in 2006, does the contribution of systematic monetary ...

How should monetary policy respond to changes in the relative price ...

When productivity shocks are the sole driver of oil prices, stabilizing CPI inflation performs relatively well. When exogenous oil supply shocks drive the ...

Optimal monetary policy and the transmission of oil-supply shocks to ...

In addition, the optimal coop- eration would activate a stronger exchange rate channel to ease the cost pressures generated by oil-price increases. Actually, ...

Comment: Oil Shocks and Aggregate Macroeconomic Behavior - jstor

all six vanables follow substantially more expansionary paths than monetary policy ... do little to mitigate the contractionary effects of the shock, though it ...

Monetary Policies and Oil Price Fluctuations Following the Subprime ...

In order to mitigate some of the adverse effects of the crisis in. * Professor of economics at school of economics, Keio University, Elected dean of the ...

FRB: Speech, Gramlich--Oil shocks and monetary policy

Now the response to the oil shock is, in effect, superimposed on any re-equilibration process built in for monetary policy. The ultimate ...

Oil Shocks and Aggregate Macroeconomic Behavior

A recent paper by Bernanke, Gertler and Watson (1997) suggests that monetary policy could be used to eliminate any recessionary consequences of an oil price ...

A Look Inside a Key Economic Debate: How Should Monetary Policy ...

In fact, tightening monetary policy solely in response to contractionary supply shocks would likely make the impact of the shocks worse for ...